KUALA LUMPUR: Serba Dinamik Holdings Bhd reported a jump in sales and profits in the third quarter ended Sept 30, boosted by its growing operations and maintenance (O&M) business.
The group's budding technology business also posted strong growth.
Net profit rose 30% to RM148mil on the back of a 41.8% increase in revenue to RM1.48bil.
The group's (O&M) business contributed 1.24bil in sales, or 84% of revenue.
This was mainly due to higher activity from the Group’s maintenance, repair and overhaul of rotating equipment (MRO) segment in the Middle East region, namely Bahrain, Qatar, Oman, and Malaysia.
"Our O&M segment continue to show strong results, as expiring O&M contracts are expected to be renewed, and we believe that it will be able to maintain its margins," Group Managing Director / Group Chief Executive Director Datuk Ir. Mohd. Abdul Karim Abdullah said.
Meanwhile, the group's inspection, repair and maintenance of static equipment and structure (IRM) segment also showed higher growth for the Q3FY20 against Q3FY19.
Serba Dinamik's venture into information, communication and technology (ICT) is also bearing fruits.
The ICT segment contributed approximately 9.5% or RM141.3mil of the total revenue for Q3FY20, a significant increase from just RM12.3mil a year ago.
"We expect to grow our ICT segment with the signing of Memorandum of Understanding (MoU) with Huawei Technologies (Malaysia) Sdn Bhd last month, focus on developing innovative solutions to drive digital transformation in urban and rural Malaysia which enable us to embark innovative IT solutions on cloud-based services and artificial intelligence (AI) technology to realise our digital transformation," Karim said.
"There is significant potential to grow our ICT business even further as we expect to secure more contracts from Zambia and other parts of Africa as well,” he added.
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